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BEMA Convention 2019 - Snack Industry Update

BEMA
June 21, 2019

BEMA Convention 2019 - Snack Industry Update

Rob Sarlls of Wyandot Snacks provides an update on the Snack Industry in 2019 at BEMA Convention 2019

BEMA

June 21, 2019
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  1. The New and Improved Snack Industry
    – Drivers and Future Opportunities
    Rob Sarlls
    Wyandot Snacks
    June 21, 2019

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  2. 2
    Agenda
    I. Who is Your Customer TODAY? – Demographics and Changing Lifestyles
    II. The Better For You Revolution – Winners and Losers
    III. What’s In Store for the Future?

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  3. 3
    Who Am I?
    Rob Sarlls Bio

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  4. 4
    Demographics
    Millennials Millennials Millennials
    ➢ 73 million Americans between
    22-37 years old
    ➢ 40% are People of Color
    ➢Biggest global spenders as of
    2020
    ➢Big on Customization,
    Individualization, and
    Innovation; Want Flexible
    “Everything”
    ➢High Social, Cultural,
    Environmental, Community
    Consciousness

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  5. 5
    Demographics
    Millennials Millennials Millennials
    ➢Arrested Development –
    far behind in marriage,
    homeownership, children
    ➢58% snack 4+ times a
    day
    ➢12% are vegetarian
    ➢The Ultimate Capitalists –
    They “Vote” With Their
    Dollars

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  6. 6
    Demographics
    Generation Z, or iGeneration
    ➢ Born from 1995 to 2010
    ➢ 30% of world’s 7.5 Billion
    Population
    ➢ Will dictate 40% of consumer
    spending in early 2020s
    ➢ 48% of US’ Gen Z people of color
    ➢ Digital Everything – addicted to
    phones, screens – 92%
    smartphone ownership - 5 hours
    per day screen time
    ➢ Into auto-replenishment, home
    delivery, “plant-forward” diets

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  7. 7
    Everyone’s Changing Lifestyles
    How We Live Changes How We Eat
    ➢ Fewer Sit-Down Dinners – more Grazing
    • 86% of Americans have replaced one meal with a snack
    • 94% of Americans snack daily
    ➢ Fewer Nuclear Family Households (less marriage, more single
    households, single parents)
    ➢ High-paced Lifestyles; Multitaskers
    ➢ Greater Ethnic Diversity
    ➢ People Pay Up for Quality, Novelty, Functionality
    ➢ “Experiences” over Ownership

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  8. 8
    Broader Food Industry
    Food Industry Trends
    ➢ Increased organic, “natural,”
    non-GMO, vegan, “free from”
    consumption
    ➢ Millennials and Gen Z’ers are
    value driven (greater private
    label acceptance, brand
    disloyal) – YET will pay up for
    “uniqueness” (especially if
    they can identify with a
    brand’s mission, social
    purpose)

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  9. 9
    Broader Food Industry (Cont’d)
    Food Industry Trends - Eating to Live (Better)
    ➢ Younger Consumers Eating to Avoid
    (Perceived or Real) Bad Effects
    ➢ Less “Processed”
    ➢ Few to None Artificial Ingredients
    ➢ Gluten Free, Wheat Free, Nut Free,
    Corn Free
    ➢ Functional Consumers Looking for
    Positive Benefits
    ➢ Improved Well-Being for Baby
    Boomers and Older
    ➢ Infant foods
    (biodynamics/regenerative
    farming)

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  10. 10
    Snack Industry Dynamics
    Snack Observations
    ➢ Salty Snack consumption growing 2-3X food consumption
    ➢ Better for You (“BFY”) snack consumption growing at 2-3X category
    growth
    ➢ Consumption of most innovative organic, and/or Non-GMO, and/or
    vegan, BFY snacks growing at 2-3x BFY snack growth
    ➢ Increased preference for RTE popcorn, extruded products, higher
    protein snacks (keto, paleo)

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  11. 11
    Snack Industry Dynamics
    Snack Industry Facts
    $20.4
    $21.3
    $23.0 $23.7 $24.1
    $25.0
    2013 2014 2015 2016 2017 2018
    US Snack Industry ($USB)
    4% CAGR
    $5 Billion category growth in five years

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  12. 12
    Snack Industry Dynamics
    Global Plant Based Snack Market
    2018
    $32 billion market
    2028
    $73 billion market
    Plant - Based
    Salty Snacks,
    $15.0
    All Other Plant -
    Based Snacks,
    $17.0
    Plant - Based
    Salty Snacks,
    $20.0
    All Other Plant -
    Based Snacks, $52.8
    130% Growth in 10 Years

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  13. 13
    Snack Industry Dynamics – Winners and Losers
    Winners Losers
    ➢ Strong Brands with Emotional
    Appeal – and Consumer “Trust”
    ➢ Clean “Pure” Ingredients
    ➢ Innovative Ingredients, Flavors,
    Packaging
    ➢ New Base Raw Materials –
    Ancient Grains, Exotics, Hemp,
    CBD, etc.
    ➢ Strong Social Media Presence
    ➢ Omni-Availability
    ➢ Fully Aware and Active in Social,
    Environmental, Community
    Causes
    ➢ Standing Still – Status Quo
    ➢ Focusing Solely on Price/Value
    Offering
    ➢ Not Having “Purpose”
    ➢ Ignoring Demographics (ethnicity,
    diversity, consumer shifts)
    ➢ Limited Product Selection
    ➢ Avoiding Efficiency Throughout
    Supply Chain

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  14. 14
    The Future of the Snack Industry?
    Snack Observations on the Future
    ➢ “Personalized” Nutrition
    ➢ DIY Personalized
    Snack Making?

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